 The Verdoorn Law: Some Evidence from Non-Parametric Frontier AnalysisChapter 6 in Productivity Growth and Economic Performance, 2002, pp 136-164 from Palgrave Macmillan Abstract: Abstract In his inaugural Cambridge lecture, Kaldor (1966) refers to what he terms Verdoorn’s Law — the statistical relationship between the rate of growth of labour productivity and the rate of growth of output — as evidence of the pervasive existence in industrial economies of static and dynamic economies of scale. Since this contribution, it has often been suggested that attempts at estimating the law (including, of course, Kaldor’s own one) suffer from serious specification problems. As is well expressed by McCombie and Thirlwall (1994, p. 167), ‘the debate over the Verdoorn Law would make a good textbook example of the problems that can beset statistical inference!’ As can be seen from the surveys in Bairam (1987a) and in McCombie and Thirlwall (1994, ch. 2), problems with estimating the law are related to three major issues. Keywords: Productivity Growth; Total Factor Productivity; Production Frontier; Malmquist Index; Free Disposal Hull (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50423-3_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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